Intel Corp. is considering a range of acquisition alternatives in reaction to Broadcom Ltd.’s hostile pursuit for Qualcomm Inc. that could include a bid for Broadcom, according to people familiar with the matter.

Intel is watching the takeover battle closely and is eager for Broadcom to fail as the combined company would pose a serious competitive threat, the people said. If it looks like Broadcom is likely to prevail, Intel could step in with its own offer for the chipmaking giant, the people said.

Intel has been considering such a move since late last year and is working with advisers, some of the people said. It is far from guaranteed that Intel would ultimately make such a move — one of the people said it is unlikely — and the complexity and size of such a combination would be enormous. Broadcom currently has a market value of about $104 billion.

It is also possible that Intel ultimately decides to make other, smaller acquisitions one of the people said. The news of Intel’s review adds a new twist to a takeover drama that has been unfolding since late last year. Broadcom has waged a monthslong hostile fight to take over Qualcomm, which would dramatically reshape the semiconductor industry and have major ramifications for other players such as Intel.

Breaking the story

Dana Mattioli and Dana Cimilluca were first to report Intel Corp. is working with advisors on acquisition alternatives including a possible bid for Broadcom Ltd., according to sources.

Email *Please fill in the required field. By clicking submit, I agree to the Privacy Policy and Cookie Policy and I understand I will receive marketing communications from Dow Jones professional information products from which I may unsubscribe using the links provided.

Thank you

Thank you for subscribing, your information has been submitted successfully.